Question

What justifications can be given for the company's decision to migrate some product development, testing, IT...

What justifications can be given for the company's decision to migrate some product development, testing, IT infrastructure, and manufacturing work to another country?

Homework Answers

Answer #1

There are a number of reasons that a company might consider when they want to decide to move or outsource the work to another country:

1. Cost consideration

The biggest benefit that companies get by outsourcing their processes is the capital considerations that are attached to the processes.

2. Incompetent or unskilled staff

For a company with an under-qualified staff, the benefits of outsourcing are higher productivity as well as reduced wastage.

3. The focus on core competency

When a company can free up the processes they are not good at and focus on the ones that they are good at, they can Crete a differentiating factor in the terms of their performance in the market.

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